ForexMinute.com – With Scrypt based ASICs going into its distribution phase, there is a mixed amount of speculation related to its possible impact on Litecoin – both optimistic and pessimistic. There is a whole section in the Litecoin community which is divided over ASICs. While one section believes that ASICs will improve Litecoin value just like they did in the case of Bitcoin, another section thinks that this whole exercise will end up degrading Litecoin as ASIC miners would simply sell their coins to recover their investment.
The Optimism over Scrypt ASICs
The section that favors Scrypt ASICs believes that the new mining machines will simply put LTC forward, making everyone realize that the coin is being supported at much larger levels thanks to the huge investments. This whole episode will likely to attract more investors and merchants towards Litecoin, the same that happened with Bitcoin earlier. And when there will be a huge demand of the silver coin, as opposite to the limited supply, its value will automatically increase.
Scrypt ASICs are also hoping to bring Litecoin market some stability. As we are already familiar with the fact that the same machines running on the Bitcoin code brought BTC block generation period close to 7 minutes (earlier it was 10 minutes), the same is hopeful to happen in case of Litecoin whose current block generation period is 2.5 minutes.
The Pessimism over Scrypt ASICs
Critics debate that the implications on the ASICs miners on LTC would be same as those of Bitcoin. Their solidified and sole logic is the lack of competition Bitcoin had when it welcomes ASICs as its capital investment. But now there are over 300 cryptocurrencies Litecoin has to compete with. Thus, a similar outcome is doubtful. They also argue that Litecoin would hardly get any benefits from ASICs as most of the coins would be simply used to be invested in BTC or fiat currencies.
The Balanced Verdict
We simply think that Litecoin, and any other cryptocurrency, is as much alive as its merchant adoption. The coin would simply hold no value if no one is willing to trade it in exchange of goods – whether it’s a chewing or a big bungalow. Litecoin today is expanding gradually as more and more businesses are beginning to accept it as one of their payments. The launch of ASICs will simply add some points to this currency, but meanwhile it will also support other coins that are based on Scrypt algorithm.
All we can see a stiff competition among altcoins in future. With Litecoin holding the second wealthiest market cap spot already, it would be too soon to predict if its existence will be endangered by ASICs. Bitcoin, meanwhile, will always get benefits from the cat fight in lower order.
To contact the reporter of the story: Yashu Gola at email@example.com
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